Sterling Bancorp 8-K Sterling Bancorp Reports Results for Second Quarter 2006

Exhibit 99.1

650 FIFTH AVENUE
NEW YORK, NY 10019-6108

John Tietjen	Rich Tauberman
Chief Financial Officer	Investor Relations/Media Relations
Sterling Bancorp	MWW Group
john.tietjen@sterlingbancorp.com	rtauberman@mww.com
212.757.8035	201.964.2408

Sterling Bancorp Reports Results for Second Quarter 2006

Gross Revenues, Loan and Deposit Growth Remained Strong

New York, NY, July 28, 2006 – Sterling Bancorp (NYSE: STL), a financial holding company and the parent company of Sterling National Bank, today reported its financial results for the quarter ended June 30, 2006.

Second Quarter 2006 Highlights:

§	Gross revenues (interest income plus noninterest income) rose to $41.1 million
§	Period-end loans in portfolio increased to $1.14 billion, 13.4% over June 30, 2005
§	Period-end demand deposits grew to $495.3 million, 8.2% over June 30, 2005
§	Interest income increased 15.1% year-over-year to $32.0 million
§	Completed the acquisition of PL Services LP — now Sterling Resource Funding Corp.

“In the second quarter, Sterling reported solid growth in key areas such as loans, demand deposits, interest income and gross revenues,” said Louis J. Cappelli, Chairman and Chief Executive Officer. “The successful integration of PL Services LP — now Sterling Resource Funding Corp. — combined with organic growth across most business sectors, contributed to top-line results and resulted in an improved net interest margin for the first time since the first quarter of 2005, up 13 basis points when compared to the first quarter of 2006. The entire banking sector continues to face challenging operating conditions and is being adversely affected by the rising cost of funding and a flattened yield curve. Sterling’s diversified product offerings and a changing mix of earning assets have proved successful in increasing gross revenues. We are also building our brand franchise and strategically expanding our portfolio of products to meet customer needs.”

Second Quarter and First Six Months 2006 Financial Results

Net Income

Net income for the second quarter of 2006 was $4.9 million. Diluted earnings per share were $0.26 for the quarter ended June 30, 2006.

Page 1 of 14

For the six months ended June 30, 2006, net income was $11.3 million. Diluted earnings per share were $0.59 for the six months ended June 30, 2006.

Net Interest Income

In the second quarter of 2006, net interest income, on a tax-equivalent basis, was $21.3 million, compared to $21.2 million in the second quarter of 2005. Net interest income benefited from higher earning assets outstanding, coupled with higher average yield on loans, which was partially offset by higher rates on interest-bearing deposits and borrowings. The flattening yield curve, combined with more competitive pricing practices in our markets, has caused the costs of deposits and borrowings to increase faster than the yield on earning assets.

For the six months ended June 30, 2006, net interest income, on a tax-equivalent basis, was $41.7 million, compared to $41.9 million in the first half of 2005.

Net interest margin for the second quarter of 2006, on a tax-equivalent basis, was 4.71%, compared to 4.84% for the second quarter of 2005.

For the six-month period ended June 30, 2006, net interest margin, on a tax-equivalent basis, was 4.70%, compared to 4.94% for the corresponding period of 2005.

Loans

Average loans held in portfolio for the second quarter of 2006 grew 13.9% year-over-year to $1.10 billion, reflecting the Company’s organic growth and the acquisition of PL Services LP — now Sterling Resource Funding Corp.

For the six-month period ended June 30, 2006, average loans held in portfolio rose 11.4% to $1.07 billion.

Demand Deposits

As of June 30, 2006, demand deposits were $495.3 million, up from $457.6 million at June 30, 2005. Demand deposits were 35% of total deposits, continuing Sterling’s tradition of maintaining one of the highest ratios of demand to total deposits in the industry.

Cost of Funds

In the second quarter of 2006, total interest expense was $10.9 million, compared to $6.7 million in the second quarter of 2005. The increase was principally driven by higher cost of funds, reflecting the impact of the higher interest rate environment in 2006. The average rate paid on interest-bearing funds was 3.41% for the second quarter of 2006, compared to 2.18% for the second quarter of 2005.

For the six-month period ended June 30, 2006, the average rate paid on interest-bearing funds was 3.24%, compared to 2.07% for the corresponding period of 2005. For the six months ended June 30, 2006, total interest expense was $20.7 million, compared to $12.4 million in the corresponding period of 2005.

Page 2 of 14

Noninterest Income and Noninterest Expenses

For the second quarter of 2006, noninterest income was $9.1 million, compared to $9.3 million in the second quarter of 2005. Higher customer-related service charges and fees were more than offset by lower mortgage banking income, income from bank-owned life insurance and other income.

The continued yield compression in the secondary mortgage market for loans has adversely affected the entire industry. Sterling has a long history of managing through multiple industry cycles and the Company’s team of seasoned mortgage bankers has refined its business model, changing the mix and pricing of its products along with instituting a number of operational efficiencies and expense reductions to address current marketplace conditions. The Company has seen further improvement in secondary-market pricing for recent sales.

Noninterest income for the six-month period ended June 30, 2006 was $15.0 million, compared to $17.3 million in the corresponding period of last year.

Noninterest expenses for the quarter ended June 30, 2006 were $19.7 million, compared to $18.2 million in the corresponding period of 2005. The increases in personnel and occupancy and equipment costs were primarily due to investments in the Sterling franchise, including the acquisition of PL Services LP — now Sterling Resource Funding Corp. Also contributing to higher employee benefit expense were increases in pension costs coupled with increases in payroll taxes and life insurance costs, primarily due to timing of recognition. Lower advertising, marketing and professional services expenses partially offset these increases.

For the six-month period ended June 30, 2006, noninterest expenses were $39.1 million, compared to $35.2 million in the first half of 2005.

Provision for Income Taxes

The provision for income taxes was $3.1 million for the second quarter of 2006, compared to $4.1 million for the corresponding period of 2005. The lower provision for income taxes for the second quarter of 2006 was due to a lower level of pre-tax income.

The provision for income taxes for the six-month period ended June 30, 2006 was $0.9 million, compared to $7.2 million for the corresponding period of 2005. During the first quarter of 2006, the Company resolved certain past tax issues and, based on management’s review of required reserves with outside professionals, reduced state and local tax reserves by $3.7 million. The remaining portion of the decrease in the provision was due to a lower level of pre-tax income.

Asset Quality

As of June 30, 2006, nonperforming assets were $5.5 million, representing 0.28% of total assets.

Page 3 of 14

The provision for loan losses for the second quarter of 2006 was $2.5 million, compared to $2.0 million for the second quarter of 2005.

For the six months ended June 30, 2006, the provision for loan losses was $5.0 million, compared to $4.7 million in the corresponding period of 2005.

The allowance for loan losses as a percentage of loans held in portfolio was 1.57% as of June 30, 2006.

Dividends and Capital Management

On June 30, 2006, Sterling paid a cash dividend of $0.19 per common share to shareholders of record as of June 15, 2006. The Company has distributed cash dividends for 242 consecutive quarters (over 60 years).

During the second quarter of 2006, Sterling repurchased 123,000 shares of common stock as part of its authorized share repurchase plan, bringing the total common stock repurchased during the six-month period ended June 30, 2006 to 171,900 shares.

Conference Call

Sterling Bancorp will host a teleconference call for the financial community on Friday, July 28, 2006 at 10:00 a.m. Eastern Time to discuss the second quarter 2006 financial results. The public is invited to listen to this conference call by dialing 866-814-1933 at least 10 minutes prior to the call and entering the access code 944233.

A replay of the conference call will be available at 1:00 p.m. Eastern Time on Friday, July 28, 2006 until 11:59 p.m. Eastern Time on Friday, August 11, 2006. The public is invited to listen to this conference call by dialing 888-266-2081 and entering the access code 944233.

About Sterling Bancorp

Sterling Bancorp (NYSE: STL) is a financial holding company with assets of $2.0 billion, offering a broad array of banking and financial services products. Its principal banking subsidiary is Sterling National Bank, founded in 1929. Sterling provides a wide range of products and services, including business and consumer loans, commercial and residential mortgage lending and brokerage, asset-based financing, factoring and accounts receivable management, trade financing, equipment leasing, corporate and consumer deposit services, trust and estate administration, and investment management services. The Company has operations in New York, New Jersey, Virginia and North Carolina and conducts business throughout the U.S.

Certain statements in this press release, including but not limited to, statements concerning future brand franchise and product portfolio, future revenues, results of operations or financial position, and plans and objectives for future operations, and other statements regarding matters that are not historical facts, are “forward-looking statements” as defined in the Securities Exchange Act of 1934. These statements are not historical facts but instead are subject to numerous assumptions, risks and uncertainties, and represent

Page 4 of 14

only the Company’s belief regarding future events, many of which, by their nature, are inherently uncertain and outside its control. Any forward-looking statements the Company may make speak only as of the date on which such statements are made. The Company’s actual results and financial position may differ materially from the anticipated results and financial condition indicated in or implied by these forward-looking statements. For a discussion of some of the risks and important factors that could affect the Company’s future results and financial condition, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements and Factors that Could Affect Future Results” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005.

- tables to follow-

Page 5 of 14

STERLING BANCORP
Consolidated Financial Highlights
(Unaudited)
(dollars In thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
OPERATING HIGHLIGHTS
Interest income	$	31,993		$	27,806		$	62,034		$	54,010
Interest expense		10,921			6,741			20,697			12,443
Provision for loan losses		2,477			2,006			5,042			4,654
Noninterest income		9,100			9,314			14,983			17,310
Noninterest expenses		19,682			18,191			39,050			35,167
Net income		4,866			6,056			11,306			11,823
Earnings per common share:
Basic		0.26			0.32			0.60			0.62
Diluted		0.26			0.31			0.59			0.60
Cash dividends declared		0.19			0.18			0.38			0.36
Common shares outstanding:
Period end		18,712			19,274			18,712			19,274
Average Basic		18,754			19,249			18,769			19,208
Average Diluted		19,286			19,923			19,310			19,826
Return on average assets		0.99	%		1.27	%		1.16	%		1.26	%
Return on average tangible equity (1)		16.07	%		18.79	%		18.67	%		18.65	%
Return on average stated equity (2)		13.43	%		16.14	%		15.76	%		16.00	%
Net interest spread, tax-equivalent basis		3.82	%		4.24	%		3.86	%		4.36	%
Net interest margin, tax-equivalent basis		4.71	%		4.84	%		4.70	%		4.94	%
ASSET QUALITY HIGHLIGHTS
Period End
Net charge-offs	$	2,827		$	2,632		$	5,504		$	4,827
Nonperforming loans		4,037			4,345			4,037			4,345
Other real estate owned		1,465			295			1,465			295
Nonperforming assets		5,502			4,640			5,502			4,640
Nonperforming loans/loans (3)		0.34	%		0.42	%		0.34	%		0.42	%
Nonperforming assets/assets		0.28	%		0.24	%		0.28	%		0.24	%
Allowance for loan losses/loans (4)		1.57	%		1.60	%		1.57	%		1.60	%
Allowance for loan losses/ nonperforming loans		443.42	%		371.83	%		443.42	%		371.83	%

(1)	Average tangible equity represents average shareholders’ equity less average goodwill.
(2)	Average stated equity is equal to average shareholders’ equity.
(3)	The term “loans” includes loans hold for sale and loans held in portfolio.
(4)	The term “loans” includes loans held in portfolio only.

Page 6 of 14

STERLING BANCORP
Consolidated Financial Highlights
(Unaudited)
(dollars In thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
BALANCE SHEET HIGHLIGHTS
Period End Balances
Security investments	$	634,570		$	725,246			8634,570		$	725,246
Loans held for sale		29,632			36,767			29,632			36,767
Loans held in portfolio, net of unearned discount		1,142,968			1,008,195			1,142,968			1,008,195
Total earning assets		1,808,326			1,771,247			1,808,326			1,771,247
Allowance for loan losses		17,901			16,156			17,901			16,156
Total assets		1,994,934			1,908,811			1,994,934			1,908,811
Demand deposits		495,257			457,565			495,257			457,565
Savings, NOW and money market deposits		436,930			405,818			436,930			405,818
Time deposits		483,256			511,255			483,256			511,255
Customer repurchase agreements		57,932			63,502			57,932			63,502
Shareholders’ equity		147,115			154,806			147,115			154,806
Average Balances
Security investments	$	681,619		$	733,753		$	685,030		$	713,308
Loans held for sale		40,455			52,609			45,556			45,340
Loans held in portfolio, net of unearned discount		1,100,938			966,636			1,070,036			.960,724
Total earning assets		1,807,602			1,772,219			1,806,239			1,739,446
Allowance for loan losses		17,365			17,652			17,301			17,450
Total assets		1,967,024			1,915,967			1,964,920			1,885,338
Demand deposits		441,630			445,933			441,683			441,247
Savings, NOW and money market deposits		405,103			398,535			427,430			398,147
Time deposits		507,455			526,709			516,567			511,674
Customer repurchase agreements		81,439			86,793			80,756			86,281
Shareholders’ equity		145,325			150,464			144,649			149,012
Capital Ratios
Tier 1 risk based		11.65	%		13.89	%		11.65	%		13.89	%
Total risk based		12.91	%		15.15	%		12,91	%		15.15	%
Leverage		8.00	%		8-53	%		8.00	%		8.53	%
Book value per common share	$	7.86		$	8.03		$	7.86		$	8.03

Page 7 of 14

STERLING BANCORP
Consolidated Balance Sheets
(Unaudited)
(In thousands, except number of shares)

	June 30,
	2006		2005
ASSETS
Cash and due from banks	$	83,340	$	51,544
Interest -bearing deposits with other banks		1,156		1,039
Investment securities
Available for sale (at estimated market value)		161,002		213,946
Held to maturity (at cost)		473,568		511.300
Total investment securities		634,570		725,246
Loans held for sale		29,632		36,767
Loans held in portfolio, net of unearned discounts		1,142,968		1,008,195
Less allowance for loan losses		17,901		16,156
Loans, net		1,125,067		992,039
Customers’ liability under acceptances		136		467
Goodwill		23,796		21,158
Premises and equipment, net		11,081		10,915
Other real estate		1,465		295
Accrued interest receivable		5,069		5,650
Bank owned life insurance		27,453		26,766
Other assets		52,169		36,925
	$	1,994,934	$	1,908,811
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Demand	$	495,257	$	457,565
Savings, NOW and money market		436,930		405,818
Time		483,256		511,255
Total deposits		1,415,443		1,374,638
Securities sold under agreements to repurchase — customers		57,932		63,502
Securities sold under agreements to repurchase — dealers		110,346		74,728
Federal funds purchased		20,000		20,000
Commercial paper		43,717		36,533
Short-term borrowings — FHLB		56,000		0
Short-term borrowings — other		1,449		1,448
Long-term borrowings — FHLB		30,000		80,000
Long-term borrowings — subordinated debentures		25,774		25,774
Acceptances outstanding		136		467
Accrued expenses and other liabilities		87,022		76,915
Total liabilities		1,847,819		1,754,005
Shareholders’ equity		147,115		154,806
	$	1,994,934	$	1,908,811
MEMORANDA
Available for sale securities — amortized cost	$	168,409	$	214,578
Held to maturity securities — estimated market value		454,700		511,541
Shares outstanding
Common issued		21,177,084		20,960,843
Common in treasury		2,465,012		1,686,555

Page 8 of 14

STERLING BANCORP
Consolidated Statements of Income
(Unaudited)
(dollars In thousands, except per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2006		2005		2006			2005
INTEREST INCOME
Loans	$	24,409	$	19,478	$	46,434		$	37,854
Investment securities — available for sale		1,978		2,467		4,180			4,969
Investment securities — held to maturity		5,551		5,733		11,295			10,943
Federal funds sold		35		112		75			222
Deposits with other banks		20		16		50			22
Total interest income		31,993		27,806		62,034			54,010
INTEREST EXPENSE
Savings, NOW and money market deposits		1,672		767		3,455			1,396
Time deposits		4,715		3,320		9,176			6,142
Securities sold u/a/r — customers		767		417		1,462			754
Securities sold u/a/r — dealers		1,344		420		2,328			669
Federal funds purchased		251		157		386			178
Commercial paper		538		223		943			383
Short-term borrowings — FHLB		642		56		835			56
Short-term borrowings — other		7		5		18			10
Long-term borrowings — FHLB		461		852		1,047			1,808
Long-term subordinated debentures		524		524		1,047			1,047
Total interest expense		10,921		6,741		20,697			12,443
Net interest income		21,072		21,065		41,337			41,567
Provision for loan losses		2,477		2,006		5,042			4,654
Net interest income after provision for loan losses		18,595		19,059		36,295			36,913
NONINTEREST INCOME
Customer related service charges and fees		6,054		3,894		9,694			7,295
Mortgage banking income		2,568		4,558		4,784			8,434
Trust fees		138		152		290			324
Bank owned life insurance income		268		437		488			687
Securities (losses)/gains		15		0		(444	)		197
Other income		57		273		171			373
Total noninterest income		9,100		9,314		14,983			17,310
NONINTEREST EXPENSES
Salaries		9,677		8,198		17,983			16,355
Employee benefits		2,830		2,345		5,786			4,095
Total personnel expense		12,507		10,543		23,769			20,450
Occupancy and equipment expenses, net		2,503		2,179		4,819			4,258
Advertising and marketing		823		1,014		1,857			2,130
Professional fees		826		1,435		2,750			2,966
Communications		481		485		913			868
Other expenses		2,542		2,535		4,942			4,495
Total noninterest expenses		19,682		18,191		39,050			35,167
Income before income taxes		8,013		10,182		12,228			19,056
Provision for income taxes		3,147		4,126		922			7,233
Net Income	$	4,866		6,056	$	11,306		$	11,823
Average number of common shares outstanding
Basic		18,754,271		19,249,263		18,769,266			19,207,818
Diluted		19,286,286		19,923,379		19,310,135			19,826,021
Earnings per average common share
Basic	$	0.26	$	0.32	$	0.60		$	0.62
Diluted		0.26		0.31		0.59			0.60
Dividends per common share		0.19		0.18		0.38			0.36

Page 9 of 14

STERLING BANCORP
Consolidated Statements of Comprehensive Income
(Unaudited)
(In thousands)

	Three Months Ended June 30,					Six Months Ended June 30,
	2006			2005		2006			2005
Net Income	$	4,866		$	6,056	$	11,306		$	11,823
Other comprehensive (loss)/income, net of tax:
Unrealized holding (losses)/gains arising during the period		(986	)		1,329		(2,220	)		(908	)
Less:
Rectification adjustment for losses/ (gains) included in net income		(8	)		0		244			(106	)
Comprehensive Income	$	3,872		$	7,385	$	9,330		$	10,809

STERLING BANCORP
Consolidated Statements of Changes in Shareholders’ Equity
(Unaudited)
(In thousands)

	Three Months Ended Jure 30,						Six Months Ended June 30,
	2006			2005			2006			2005
Balance, at beginning of period	$	148,327		$	149,508		$	147,588		$	148,704
Net income for period		4,866			6,056			11,306			11,823
Common shares issued under stock incentive plan and related tax benefits		1,170			2,094			1,723			3,111
Purchase of common shares for treasury		(2,284	)		(547	)		(3,810	)		(547	)
Cash dividends-Common shares		(3,562	)		(3,504	)		(7,124	)		(6,963	)
Surrender of shares issued under incentive compensation plan		(408	)		(196	)		(614	)		(445	)
Amortization of unearned compensation		0			66			22			137
Change in net unrealized holding (losses)/gains on available for sale securities		(986	)		1,329			(2,220	)		(908	)
Reclassification adjustment for losses/(gains) included in net income		(8	)		0			244			(106	)
Balance, at end of period	$	147,115		$	154,806		$	147,115		$	154,806

Page 10 of 14

STERLING BANCORP
Average Balance Sheets [1]
(Unaudited)
(dollars in thousands)

	Three Months Ended
	June 30, 2006								June 30, 2005
	AVERAGE					AVERAGE			AVERAGE					AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
Assets
Interest-bearing deposits with other banks	$	1,788		$	20		4.61	%	$	3,155		$	16		2.02	%
Investment securities — available for sale		143,428			1,684		4.70			197,236			2,185		4.43
Investment securities — held to maturity		488,398			5,551		4.55			511,387			5,733		4.48
Investment securities — tax exempt [2]		29,793			485		6.53			25,130			459		7.33
Total investment securities		661,619			7,720		4.67			733,753			8,377		4.57
Federal funds sold		2,802			35		4.93			16,066			112		2.77
Loans, net of unearned discount [3]		1,141,393			24,409		8.83			1,019,245			19,478		7.92
Total Interest-Earning Assets [2]		1,807,602			32,184		7.23	%		1,772,219			27,983		6.42	%
Cash and due from banks		62,980								61,229
Allowance for loan losses		(17,365	)							(17,652	)
Goodwill		23,886								21,158
Other		89,921								79,013
Total Assets	$	1,967,024							$	1,915,967
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	23,646			24		0.41	%	$	28,577			28		0.40	%
NOW		176,292			691		1.57			155,218			269		0.69
Money market		205,165			957		1.87			214,740			469		0.88
Time		504,428			4,707		3.74			523,697			3,312		2.54
Foreign
Time		3,027			8		1.02			3,012			8		1.09
Total Interest Bearing Deposits		912,558			6,387		2.81			925,244			4,086		1.77
Borrowings
Securities sold u/a/r— customers		81,439			767		3.78			86,793			417		1.93
Securities sold u/a/r— dealers		106,438			1,344		5.07			54,284			420		3.11
Federal funds purchased		19,912			251		4.99			20,223			157		3.12
Commercial paper		49,371			538		4.37			37,211			223		2.40
Short-term borrowings — FHLB		50,498			642		5.10			7,045			56		3.18
Short-term borrowings — other		581			7		5.09			715			5		3.06
Long-term borrowings— FHLB		39,670			461		4.64			82,308			854		4.14
Long-term borrowings — sub debt		25,774			524		8.37			25,774			523		8.38
Total Borrowings		373,683			4,534		4.87			314,353			2,655		3.38
Total Interest-Bearing Liabilities		1,286,241			10,921		3.41	%		1,239,597			6,741		2.18	%
Noninterest-bearing demand deposits		441,630								445,933
Other liabilities		93,828								79,973
Total Liabilities		1,821,699								1,765,503
Shareholders’ equity		145,325								150,464
Total Liabilities and Shareholders’ Equity	$	1,967,024							$	1,915,967
Net interest income/spread [2]					21,263		3.82	%					21,242		4.24	%
Net yield on interest-earning assets							4.71	%							4.84	%
Less: Tax-equivalent adjustment					191								177
Net interest income				$	21,072							$	21,065

[1]	The average balances of assets, liabilities and shareholders’ equity are computed on the basis of daily averages. Average rates are presented on a tax-equivalent basis. Certain reclassifications have been made to prior period amounts to conform to current presentation.
[2]	Interest and/or average rates are presented on a tax-equivalent basis.
[3]	Includes loans held for sale and loans held in portfolio; all loans are domestic. Nonaccrual loans are included in amounts outstanding and income has been included to the extent earned.

Page 11 of 14

STERLING BANCORP
Average Balance Sheets [1]
(Unaudited)
(dollars in thousands)

	Six Months Ended
	June 30, 2006								June 30, 2005
	AVERAGE					AVERAGE			AVERAGE					AVERAGE
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
Assets
Interest-bearing deposits with other banks	$	2,413		$	50		4.23	%	$	2,770		$	22		1.61	%
Investment securities — available for sale		156,907			3,571		4.55			200,717			4,399		4.38
Investment securities — held to maturity		497,371			11,295		4.54			486,814			10,943		4.50
Investment securities — tax exempt [2]		30,752			1,004		6.59			25,777			930		7.28
Total investment securities		685,030			15,870		4.64			713,308			16,272		4.56
Federal funds sold		3,204			75		4.65			17,304			222		2.56
Loans, net of unearned discount [3]		1,115,592			46,434		8.71			1,006,064			37,854		7.94
Total Interest-Earning Assets [2]		1,806,239			62,429		7.10	%		1,739,446			54,370		6.43	%
Cash and due from banks		64,122								62,625
Allowance for loan losses		(17,301	)							(17,450	)
Goodwill		22,530								21,158
Other		89,330								79,559
Total Assets	$	1,964,920							$	1,885,338
Liabilities and Shareholders’ Equity
Interest-bearing deposits
Domestic
Savings	$	24,666			50		0.41	%	$	28,804			54		0.38	%
NOW		179,385			1,426		1.60			148,748			463		0.63
Money market		223,379			1,979		1.79			220,595			879		0.80
Time		513,542			9,160		3.60			508,667			6,126		2.43
Foreign
Time		3,025			16		1.06			3,007			16		1.09
Total Interest-Bearing Deposits		943,997			12,631		2.70			909,821			7,538		1.67
Borrowings
Securities sold u/a/r- customers		80,756			1,462		3.65			86,281			754		1.76
Securities sold u/a/r- dealers		96,683			2,328		4.86			46,416			669		2.91
Federal funds purchased		16,117			386		4.77			11,826			178		2.99
Commercial paper		45,776			943		4.15			36,412			383		2.12
Short-term borrowings — FHLB		33,814			835		4.98			3,542			56		3.18
Short-term borrowings — other		746			18		4.81			745			10		2.83
Long-term borrowings— FHLB		45,746			1,047		4.58			89,502			1,808		4.04
Long-term borrowings — sub		25,774			1,047		8.38			25,774			1,047		8.38
Total Borrowings		345,412			8,066		4.71			300,498			4,905		3.27
Total Interest-Bearing Liabilities		1,289,409			20,697		3.24	%		1,210,319			12,443		2.07	%
Noninterest-bearing demand deposits		441 ,683								441,247
Other liabilities		89,179								84,760
Total Liabilities		1,820,271								1,736,326
Shareholders’ equity		144,649								149,012
	��
Total Liabilities and Shareholders’ Equity	$	1,964,920							$	1,885,338
Net interest income/spread [2]					41,732		3.86	%					41,927		4.36	%
Net yield on interest-earning assets							4.70	%							4.94	%
Less: Tax-equivalent adjustment					395								360
Net interest income				$	41,337							$	41,567

[1]	The average balances of assets, liabilities and shareholders’ equity are computed on the basis of daily averages. Average rates are presented on a tax-equivalent basis. Certain reclassifications have been made to prior period amounts to conform to current presentation.
[2]	Interest and/or average rates are presented on a tax-equivalent basis.
[3]	Includes loans held for sale and loans held in portfolio; all loans are domestic. Nonaccrual loans are included in amounts outstanding and income has been included to the extent earned.

Page 12 of 14

STERLING BANCORP AND SUBSIDIARIES
Rate/Volume Analysis [1]
(Unaudited)
(In thousands)

	Increase/(Decrease)
	Three Months Ended
	June 30, 2006
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	(9	)	$	13		$	4
Investment securities — available for sale		(627	)		126			(501	)
Investment securities — held to maturity		(267	)		85			(102	)
Investment securities —tax exempt		79			(53	)		26
Total investment securities		(815	)		158			(657	)
Federal funds sold		(129	)		52			(77	)
Loans, net of unearned discounts [3]		2,518			2,413			4,931
TOTAL INTEREST INCOME	$	1,565		$	2,636		$	4,201
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(5	)	$	1		$	(4	)
NOW		40			382			422
Money market		(22	)		510			488
Time		(126	)		1,521			1,395
Foreign
Time		0			0			0
Total interest-bearing deposits		(113	)		2,414			2,301
Borrowings
Securities sold under agreements to repurchase — customers		(27	)		377			350
Securities sold under agreements to repurchase — dealers		558			366			924
Federal funds purchased		(2	)		96			94
Commercial paper		90			225			315
Short-term borrowings — FHLB		533			53			586
Short-term borrowings — other		(1	)		3			2
Long-term borrowings — FHLB		(485	)		92			(393	)
Long-term borrowings — subordinated debentures		0			1			1
Total borrowings		666			1,213			1,879
TOTAL INTEREST EXPENSE	$	553		$	3,627		$	4,180
				��
NET INTEREST INCOME	$	1,012		$	(991	)	$	21

[1]	This table is presented on a tax-equivalent basis.
[2]	Changes in interest income and Interest expense due to a combination of both volume and rate have been allocated to the change due to volume and the change due to rate in proportion to the relationship of change due solely to each.
[3]	Includes loans held for sale and loans held in portfolio; all loans are domestic. Nonaccrual loans are included in amounts outstanding, and income has been included to the extent earned.

Page 13 of 14

STERLING BANCORP AND SUBSIDIARIES
Rate/Volume Analysis [1]
(Unaudited)
(In thousands)

	Increase/(Decrease)
	Six Months Ended
	June 30, 2006
	Volume			Rate			Net [2]
INTEREST INCOME
Interest-bearing deposits with other banks	$	(3	)	$	31		$	28
Investment securities — available for sale		(990	)		162			(828	)
Investment securities — held to maturity		249			103			352
Investment securities — tax exempt		109			(35	)		74
Total investment securities		(632	)		230			(402	)
Federal funds sold		(253	)		106			(147	)
Loans, net of unearned discounts [3]		4,538			4,042			8,580
TOTAL INTEREST INCOME	$	3,650		$	4,409		$	8,059
INTEREST EXPENSE
Interest-bearing deposits
Domestic
Savings	$	(8	)	$	4		$	(4	)
NOW		114			849			963
Money market		11			1,089			1,100
Time		59			2,975			3,034
Foreign
Time		0			0			0
Total interest-bearing deposits		176			4,917			5,093
Borrowings
Securities sold under agreements to repurchase — customers		(51	)		759			708
Securities sold under agreements to repurchase — dealers		1,024			635			1,659
Federal funds purchased		79			129			208
Commercial paper		118			442			560
Short-term borrowings — FHLB		730			49			779
Short-term borrowings — other		0			8			8
Long-term borrowings — FHLB		(974	)		213			(761	)
Long-term borrowings — subordinated debentures		0			0			0
Total borrowings		926			2,235			3,161
TOTAL INTEREST EXPENSE	$	1,102		$	7,152		$	8,254
NET INTEREST INCOME	$	2,548		$	(2,743	)	$	(195	)

[1]	This table is presented on a tax-equivalent basis.
[2]	Changes in interest income and interest expense due to a combination of both volume and rate have been allocated to the change due to volume and the change due to rate in proportion to the relationship of change due solely to each.
[3]	Includes loans held for sale and loans held in portfolio; all loans are domestic. Nonaccrual loans are Included in amounts outstanding, and income has been included to the extent earned.

Page 14 of 14